Egypt issues "samurai" bonds for the first time in history

The Egyptian Ministry of Finance launched the first issuance of "samurai" bonds in the Japanese market, at a value of 60 billion Japanese yen, "half a billion dollars", to become the first country to issue bonds in Japanese yen.

Thus, Egypt became the first country in the Middle East to issue international bonds denominated in the Japanese yen currency in the Japanese markets, after Prime Minister Mostafa Madbouly announced a new cooperation program with the International Monetary Fund.

The Ministry of Finance launched this issue with a credit guarantee from the Japanese bank "Sumitomo Mitsui", and the coverage of one of the Japanese government insurance institutions, Nippon Export and Investment Insurance, and obtaining a low pricing for samurai bonds in the Japanese market, where the coupon amounted to 0.85% Annually for a period of 5 years, which makes it more distinguished compared to the coupon prices of international dollar bond issuances, with an average total annual cost of issuance of 2.33%.

Egyptian Finance Minister Mohamed Maait affirmed: “Our success in launching the first samurai bond issue in the Japanese market reflects our ability to return to the international bond markets, including those that we enter for the first time in Egypt’s history, despite the unprecedented global challenges the economies are witnessing.” The Egyptian issuance of samurai bonds in the Japanese market succeeded in attracting many Japanese investors, as it was very popular with them, which indicates their confidence in the solidity of the Egyptian economy and its ability to achieve its goals in light of the current global economic repercussions.

The minister added that this issuance is characterized by specifications of a special nature due to the difference of the Japanese market from other international markets, as the Japanese investor is more selective in his investment policies and more willing to invest in debt instruments of countries with a high credit rating, explaining that this issuance comes within the plan of the Ministry of Foreign Affairs. Successful financial diversification of debt instruments, issuance currencies and markets, and investor segments, extending the life of the debt, reducing the cost of external debt and thus reducing the cost of financing.

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